Cooper Metals Ltd (ASX:CPM) is raising up to $2 million to step up exploration efforts, including drilling, at high-priority copper-gold targets in the Mt Isa East Project within the resource-rich Mt Isa region of northwest Queensland.
The capital raising initiative is off to a strong start with firm commitments from Australian and international institutional and sophisticated investors to raise $1.25 million, before costs, in a placement.
Strong support
In the placement, which was oversubscribed, the company will issue 10 million fully paid ordinary shares at $0.125 per share, representing a 7.41% discount to the last trading price of $0.135 and 12.35% discount to the 5-day VWAP of $0.143.
Eligible shareholders will also be given the opportunity to participate in the capital raising through a share purchase plan (SPP) on the same terms as the placement to raise up to an additional $750,000, before costs.
“Ever-growing pipeline”
Managing director Ian Warland said: “The funds raised from the placement and SPP enable the company to drill test a number of our ever-growing pipeline of copper-gold targets as rapidly and effectively as possible.
"We appreciate the continued support from existing sophisticated and institutional investors and welcome new Australian and international shareholders to the register.
"We are pleased to announce the SPP in conjunction with the placement, which will enable our valued retail shareholder base the opportunity to participate in the capital raising on the same price and terms as the placement.”
Drilling programs
Funds raised will primarily be used for follow-up diamond drilling at the King Solomon copper-gold prospect, reverse circulation (RC) drilling of several untested copper-gold drill targets at the Mt Isa East Project, costs of the placement and SPP, and general working capital.
Diamond drilling is scheduled to commence in mid-August at King Solomon within the Mt Isa East Copper-Gold Project focusing on three plunging shoots delineated in recent RC drilling.
The company has also planned around 5,000 metres of RC drilling, testing several of the numerous copper-gold targets it has identified in the last 18 months at the Mt Isa East Project.
Placement details
The placement is being made utilising the company's available placement capacity under Listing Rule 7.1 (5,433,334 placement shares) and 7.1A (4,566,666 placement shares).
Subject to shareholder approval, participants will also receive one free-attaching option for every two placement shares subscribed for and issued. These will be exercisable at $0.25 and will expire three years from the date of issue.
Placement shares will rank equally with the existing fully paid ordinary shares on issue and are anticipated to be issued on August 11, 2023.
It is anticipated that the company will seek shareholder approval for the issue of the placement options at a general meeting.
Prenzler Group Pty Ltd is acting as lead manager for the placement.
SPP details
Under the SPP, shareholders who are registered holders of shares in the company at 5.00pm (AWST) on August 2, 2023, with a registered address in Australia or New Zealand can subscribe for specific parcels of shares up to a maximum of $30,000 worth also at an issue price of $0.125 per share.
The SPP shares will be issued pursuant to ASX Listing Rule 7.2 (exception 5) and will not utilise any of the company’s placement capacity under Listing Rules 7.1 and 7.1A.
Any SPP shares offered that are not taken up by Eligible Shareholders will make up a shortfall and will be issued subject to shareholder approval at the general meeting.
The option arrangements also apply to the SPP.
Participation in the SPP is optional and Cooper Metals reserves the right to scale back any applications under the SPP or to raise a higher amount (subject to the ASX Listing Rules).
Prenzler will also be lead manager of the SPP. If there is a shortfall in the subscription of SPP shares under the SPP, Prenzler will assist with procuring shortfall applications.